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Penalties for failing to report residential CGT

Penalties can be severe for failure to report CGT arising from residential property within 60 days.

The need to report capital gains tax (CGT) on property disposals has been around since April 2020, but in 27th October 2021 the filing deadline was set at 60 days. 

Despite this being in force for some time, it is regularly missed and unfortunately, HMRC are not willing to accept ignorance as a defence costing taxpayers significant late filing penalties.

For those selling their main home, the chances are that you will claim 100% principle private residence relief mitigating all exposure to CGT, so you don’t need to worry, but if you have let the property for part of the period of ownership or have a second home, please seek guidance at the time of marketing the property for sale.

Non-UK residents should note that they are required to make a 60-day return regardless of whether a taxable gain has been made.

Companies are not required to report, and commercial properties are not included in this regime. However, the rules do apply to Trusts, Partnerships, LLPs etc.

Complying with the reporting requirements:

In order to know whether you should make a 60-day return (assuming you are UK resident) you will need to assess whether a capital gains tax liability has been incurred as a result of the property sale.

You can ask your tax agent to prepare the computation and subsequently file the Return, however, this is not done through the normal self-assessment system or commercial software, so it is left to the taxpayer to start the process at

You can file the return yourself here or apply for an agent reference so that they can generate a link in their Agent Gateway and file on your behalf. Please be mindful of the time it takes to register for this reference, don’t expect your accountant to be able to act if you approach them on day 59!

Despite reporting to HMRC 60 days after the CGT arises, the details of the gain and tax paid, need to be declared on your self-assessment Tax Return.


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